Exhibit 99.1
Fourth Quarter 2005
Earnings Call
NASDAQ: CCBI
January 23, 2006
Regulation FD
This presentation may include forward-looking statements related to the plans,
beliefs and goals of the Company, its subsidiaries, which involve certain risks
and uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Such risks and uncertainties include, but are
not limited to, the following factors: competitive pressure in the banking
industry; changes in the interest rate environment; the health of the economy,
either nationally or regionally; the deterioration of credit quality, which would
cause an increase in the provision for possible loan and lease losses; changes in
the regulatory environment; changes in business conditions, particularly in
California real estate; volatility of rate sensitive deposits; asset/liability matching
risks and liquidity risks; changes in the securities markets. The Company
undertakes no obligation to revise or publicly release any revision to these
forward-looking statements.
2
4TH QUARTER HIGHTLIGHTS
Earnings of $0.26 per diluted share
“Non-GAAP” earnings of $0.29 per diluted share
Net income totaled $15.1 million
Net income totaled $16.4 million, excluding costs of
Commercial Banking Division
Total revenues were a record $75.2 million
Total asset grew to $5.5 billion
Loan fundings reached a record $716 million
3
Diluted Earnings Per Share
$0.29
$0.36
$0.29
$0.40
$0.26
$0.34
$-
$0.10
$0.20
$0.30
$0.40
$0.50
12/04
3/05
6/05
9/05
12/05
12/05 *
Earnings Performance
* Excluding costs associated with the Bank’s Commercial Banking Division
of $2.3 million, of which $1.2 million is associated with professional
expense and $1.1 million is associated with compensation and other expense.
4
Quarterly Net Income
$16.4
$20.2
$15.1
$19.3
$23.1
$16.8
$0
$10
$20
$30
12/04
3/05
6/05
9/05
12/05
12/05 *
($ in millions)
Earnings Performance
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
5
Operating Performance
Total Revenues
$71.6
$67.1
$73.3
$66.0
$75.2
$0
$20
$40
$60
$80
12/04
3/05
6/05
9/05
12/05
($ in millions)
*
* The Company defines total revenues is defined as interest income and
noninterest income.
6
Operating Performance
Net Interest Income
$38.5
$38.3
$38.9
$38.3
$37.4
$0
$10
$20
$30
$40
$50
12/04
3/05
6/05
9/05
12/05
($ in millions)
7
Net Interest Margin
3.28%
3.31%
3.21%
3.38%
3.27%
0%
1%
2%
3%
4%
12/04
3/05
6/05
9/05
12/05
8
Net Interest Margin
Excluding Hawthorne Purchase Accounting Adjustments
3.17%
3.22%
3.13%
3.08%
3.04%
0%
1%
2%
3%
4%
12/04
3/05
6/05
9/05
12/05
9
Interest Yields and Costs
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Interest Earning Assets
Loans
6.10%
5.88%
5.61%
5.46%
5.47%
Securities
4.40%
4.39%
4.37%
4.33%
4.29%
FHLB Stock
4.75%
4.23%
4.42%
4.28%
3.72%
Cash and Cash Equivalents
3.37%
3.46%
2.69%
2.37%
2.21%
Total Yield on Interest Earning Assets
5.93%
5.70%
5.46%
5.31%
5.30%
Interest Bearing Liabilities
Transaction Accounts
2.77%
2.17%
1.85%
1.69%
1.66%
Certificates of Deposit
3.45%
3.03%
2.62%
2.24%
1.76%
FHLB Advances
3.19%
2.74%
2.51%
2.33%
2.19%
Exchange Balances
0.86%
0.88%
0.85%
0.76%
-
Junior Subordinated Debentures
6.99%
6.55%
6.15%
5.71%
5.21%
Other Borrowings
4.06%
3.52%
2.99%
2.51%
2.01%
Cost on Interest Bearing Liabilities
2.87%
2.54%
2.34%
2.21%
2.04%
Net Spread
3.06%
3.16%
3.12%
3.10%
3.26%
Net Interest Margin
3.21%
3.31%
3.28%
3.27%
3.38%
FOR THE THREE MONTHS
10
Operating Performance
Noninterest Income
$6.7
$3.7
$6.9
$6.1
$7.4
$0
$2
$4
$6
$8
12/04
3/05
6/05
9/05
12/05
($ in millions)
11
Operating Performance Ratios
Efficiency Ratio
42.0%
47.2%
30.1%
33.3%
43.5%
28.1%
0%
10%
20%
30%
40%
50%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
12
Operating Performance Ratios
G&A to Average Assets
1.16%
1.53%
1.39%
1.56%
1.01%
0.98%
0.00%
0.50%
1.00%
1.50%
2.00%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
13
Balance Sheet
Total Assets
$5.02
$5.33
$5.46
$5.18
$5.24
$0
$1
$2
$3
$4
$5
$6
12/04
3/05
6/05
9/05
12/05
($ in billions)
14
Total Loan Fundings
$716.0
$609.9
$624.7
$607.8
$540.8
$0
$100
$200
$300
$400
$500
$600
$700
$800
12/04
3/05
6/05
9/05
12/05
($ in millions)
Strong Loan Fundings
15
Loan Funding Composition
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Multifamily
334,190
$
298,613
$
319,569
$
338,313
$
320,383
$
Commercial Real Estate
104,256
54,277
109,495
45,435
18,706
Total Income Property
438,446
352,890
429,064
383,748
339,089
Single Family Residential
81,884
96,644
122,669
146,539
110,065
Construction & Land
161,151
112,162
43,270
58,593
44,226
681,481
561,696
595,003
588,880
493,380
Bank Business Fundings
3,175
8,500
4,300
6,249
2,350
Broker/Conduit Fundings
31,383
39,698
25,412
12,695
45,053
Total Loan Fundings
716,039
$
609,894
$
624,715
$
607,824
$
540,783
$
(Dollars in Thousands)
FOR THE THREE MONTHS
16
Historical and Forecasted 12-MAT
**12 MAT Calculation and Forecast Based upon Estimated Current Month Average of the 1yr CMT
Forecast Assumption: January Month Average of CMT is 4.40 as of 1/20/2006
Commercial Capital Bank
12 MAT Calculation and Forecast
Month
1yr CMT
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-04
2.23
2.23
Nov-04
2.50
2.50
2.50
Dec-04
2.67
2.67
2.67
2.67
Jan-05
2.86
2.86
2.86
2.86
2.86
Feb-05
3.03
3.03
3.03
3.03
3.03
3.03
Mar-05
3.30
3.30
3.30
3.30
3.30
3.30
3.30
Apr-05
3.32
3.32
3.32
3.32
3.32
3.32
3.32
3.32
May-05
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
3.33
Jun-05
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
3.36
Jul-05
3.64
3.64
3.64
3.64
3.64
3.64
3.64
3.64
3.64
3.64
3.64
Aug-05
3.87
3.87
3.87
3.87
3.87
3.87
3.87
3.87
3.87
3.87
3.87
3.87
Sep-05
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.85
Oct-05
4.18
4.18
4.18
4.18
4.18
4.18
4.18
4.18
4.18
4.18
4.18
4.18
Nov-05
4.33
4.33
4.33
4.33
4.33
4.33
4.33
4.33
4.33
4.33
4.33
Dec-05
4.35
4.35
4.35
4.35
4.35
4.35
4.35
4.35
4.35
4.35
Jan-06
4.40
**
4.40
4.40
4.40
4.40
4.40
4.40
4.40
4.40
Feb-06
4.40
**
4.40
4.40
4.40
4.40
4.40
4.40
4.40
Mar-06
4.40
**
4.40
4.40
4.40
4.40
4.40
4.40
Apr-06
4.40
**
4.40
4.40
4.40
4.40
4.40
May-06
4.40
**
4.40
4.40
4.40
4.40
Jun-06
4.40
**
4.40
4.40
4.40
Jul-06
4.40
**
4.40
4.40
Aug-06
4.40
**
4.40
Total Avg
3.163
3.326
3.478
3.618
3.747
3.861
3.953
4.043
4.132
4.218
4.282
4.326
Actual
Forecast
17
Focus on Transaction Accounts
Expand transaction deposit accounts in the
existing branch system
$40 million increase in the fourth quarter over the third quarter
Acquire branches and deposits that enhance the
existing network.
Acquisition of Calnet will result in $153 million of additional
deposits upon closing, which is expected in first quarter of 2006.
Increase 1031 exchange balances as a low cost
alternative to wholesale funding.
Acquisition of Lawyers Asset Management in 2006 will add over
$100 million of exchange balances in the first quarter of 2006.
18
Transaction Account Balances
Dec. 31, 2005
Sept. 30, 2005
June 30, 2005
Mar. 31, 2005
Dec. 31, 2004
Demand Deposits, Noninterst-Bearing
141,597
$
140,185
$
127,300
$
110,741
$
97,931
$
Demand Deposits, Interest-Bearing
71,386
74,063
74,941
78,611
78,003
Money Market
720,367
650,950
556,495
512,514
718,650
Savings Accounts
147,386
173,481
218,573
281,766
336,474
Transaction Account Deposits
1,080,736
1,038,679
977,309
983,632
1,231,058
1031 Exchange Balances
623,284
679,526
685,551
370,202
-
Total Transaction Account Balances
1,704,020
$
1,718,205
$
1,662,860
$
1,353,834
$
1,231,058
$
19
Bank Deposits
59%
61%
56%
55%
62%
$2.88
$2.76
$2.70
$2.40
$2.27
$0
$1
$2
$3
12/04
3/05
6/05
9/05
12/05
Transaction Accounts
Time Deposits
($ in billions)
Changing Deposit Mix
20
Bank Deposit Composition
DDA
9%
Savings
5%
CD
41%
Money
Market
45%
At December 31, 2005
21
Wholesale Funding Mix
$1.8
$1.7
$1.7
$2.2
$2.1
$0
$1
$2
$3
12/04
3/05
6/05
9/05
12/05
FHLB Advances
Junior Debentures
Other Borrowings
($ in billions)
22
Profitability Ratios
Return on Average Assets
1.61%
1.25%
1.78%
1.30%
1.15%
1.47%
0.0%
0.5%
1.0%
1.5%
2.0%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
23
Profitability Ratios
Return on Average Tangible Assets
1.73%
1.92%
1.59%
1.41%
1.24%
1.35%
0.0%
0.5%
1.0%
1.5%
2.0%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
24
Profitability Ratios
Return on Average Equity
9.9%
9.5%
8.7%
14.4%
13.1%
11.6%
0%
5%
10%
15%
20%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
25
Profitability Ratios
Return on Average Tangible Equity
22.4%
20.6%
23.9%
28.1%
34.5%
31.6%
0%
5%
10%
15%
20%
25%
30%
35%
12/04
3/05
6/05
9/05
12/05
12/05 *
* Excluding costs associated with the Bank’s Commercial Banking
Division of approximately $2.3 million.
26
Per Share Data
Book Value Per Share
$12.23
$11.47
$11.78
$12.07
$12.36
$0
$2
$4
$6
$8
$10
$12
$14
12/04
3/05
6/05
9/05
12/05
27
Per Share Data
Tangible Book Value Per Share
$4.80
$4.85
$4.86
$5.23
$5.05
$0
$1
$2
$3
$4
$5
$6
12/04
3/05
6/05
9/05
12/05
28
Capital Ratios
Tangible Equity to Tangible Assets
5.44%
5.62%
5.82%
5.84%
5.62%
0%
2%
4%
6%
8%
12/04
3/05
6/05
9/05
12/05
29
Bank Capital Ratio
Tier 1 Core Capital Ratio
8.05%
8.01%
8.70%
8.91%
8.75%
0%
2%
4%
6%
8%
10%
12/04
3/05
6/05
9/05
12/05
30
Fourth Quarter 2005
Earnings Call
NASDAQ: CCBI
January 23, 2006